China Resources and Transportation Group Limited announced that based on the preliminary review of the draft unaudited consolidated income statement of the Group for the year ended March 31, 2012, the company announced that the Group is expected to record a substantial loss for the year ended March 31, 2012 as compared to the net loss for the same period in 2011 which is mainly attributable to the loss arising from changes in fair value of derivative financial instruments of convertible bonds and the loss arising from changes in fair value less costs to sell of the biological assets in China for the period under review. The Board considers that the changes in fair value of the derivative financial instruments and the biological assets in China are non-cash items which will not have an impact on the operating cash flows of the Group.